Tag: excess stock costs

  • The Hidden Costs of Excess Inventory

    The Hidden Costs of Excess Inventory

    Inventory may create a sense of safety, but it is often the silent destroyer of profitability. Businesses hold stock for many valid reasons—managing supply risk, ensuring production continuity, enabling immediate sales, meeting customer expectations, or anticipating price changes—but excessive inventory quietly erodes financial performance. Yet inventory decisions, initially objective, often become subjective over time: Maximum/minimum…